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Machinery Co., Minneapolis, Minn., Etc.

HEARING

BEFORE THE

COMMITTEE ON WAR CLAIMS

HOUSE OF REPRESENTATIVES

SEVENTY-FIRST CONGRESS

SECOND SESSION

ON

H. R. 7874

EMPLOYEES OF THE MINNEAPOLIS STEEL & MACHINERY CO., MINNEAPOLIS, MINN., ETC.

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EMPLOYEES OF THE MINNEAPOLIS STEEL & MACHINERY

CO., MINNEAPOLIS, MINN., ETC.

WASHINGTON, MARCH 5, 1930

HOUSE OF REPRESENTITIVES,

SUBCOMMITTEE No. 1 OF THE COMMITTEE ON WAR CLAIMS,

Washington, D. C.

The committee convened at 2 o'clock, Hon. Joseph L. Hooper (chairman) presiding.

The CHAIRMAN. The committee will come to order.

We have present Representatives Andresen, Mass., Goodwin, and Nolan, Representatives from the State of Minnesota.

This is a hearing before Subcommittee No. 1 on H. R. 7874, introduced by Mr. Andresen, being a bill entitled "A bill to provide for the carrying out of the award of the National War Labor Board of April 11, 1919, and the decision of the Secretary of War, of date November 30, 1920, in favor of certain employees of the Minneapolis Steel & Machinery Co., Minneapolis, Minn.; of the St. Paul Foundry Co., St. Paul, Minn.; of the American Hoist & Derrick Co., St. Paul, Minn.; and of the Twin City Forge & Foundry Co., Stillwater, Minn."

[H. R. 7874, Seventy-first Congress, second session]

A BILL To provide for the carrying out of the award of the National War Labor Board of April 11, 1919, and the decision of the Secretary of War of date November 30, 1920, in favor of certain employees of the Minneapolis Steel and Machinery Company, Minneapolis, Minnesota; of the Saint Paul Foundry Company, Saint Paul, Minnesota; of the American Hoist and Derrick Company; Saint Paul, Minnesota; and of the Twin City Forge and Foundry Company, Stillwater, Minnesota.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secrtary of War is authorized and directed to pay and discharge the claims of certain employees (or their heirs, administrators, or executors) of the Minneapolis Steel and Machinery Company, Minneapolis, Minnesota; of the Saint Paul Foundry Company, Saint Paul, Minnesota; of the American Hoist and Derrick Company, Saint Paul, Minnesota; and of the Twin City Forge and Foundry Company, Stillwater, Minnesota, for additional compensation for work performed as employees of such companies in the execution of contracts made by such companies and the United States for the manufacture of war materials for the use of the War Department or the military forces of the United States. Such payment shall be based upon the principles laid down in the award of the National War Labor Board of April 11, 1919, and the decision of the Secretary of War of date November 30, 1920, and shall be in accordance with the interpretations and the classifications and adjustments made under the direction of the board in pursuance of such award. In the case of any employees with respect to whom classifications and adjustments have not been made in pursuance of such award and interpretations thereof the Secretary of War shall make the classifications and adjustments necessary for the payment and discharge of claims under this act.

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SEC. 2. That no payment under this act shall be made after the expiration of two years from its passage unless prior to the expiration of such time a claim therefor is presented to the Secretary of War in such manner as he shall by regulations prescribe.

SEC. 3. That the provisions of the act shall not apply to any employees of such companies with respect to whom the award of the National War Labor Board was carried out, nor shall this act be construed to prejudice any claims which the employees receiving the benefits thereof may have in respect to contracts made by the companies and the United States for the manufacture of materials for the use of any department or service of the Government other than the War Department or the military forces of the United States.

SEC. 4. That there is hereby appropriated, out of any money in the Treasury not otherwise appropriated, such sum, not in excess of $1,200,000, as may be necessary to carry out the provisions of section 1 of the act.

SEC. 5. That no claim under the provisions of this act shall be settled, adjusted, or reviewed under section 236 of the Revised Statutes, as amended, nor shall jurisdiction of any such claim be had except as provided in this act This hearing is held on March 5, 1930.

Present Chairman Hooper and Representatives Eslick and Hare. Mr. Andresen, which one of the members of your delegation would like to have charge of the order of the hearing?

Mr. ANDRESEN. We have three witnesses.

The CHAIRMAN. Do any of the Members of Congress present desire to make a statement preliminary to the hearing?

Mr. NOLAN. We are here, Mr. Chairman, to give our moral support to these gentlemen.

Mr. ANDRESEN. I will make a short preliminary statement, Mr. Chairman. Mr. Chairman and members of the committee, this bill, H. R. 7874, or a similar bill, was introduced by me during the Sixty-ninth Congress. Hearings were held in the Committee on Claims. A complete record of the hearings before that committee is here for the consideration of this committee.

The subcommittee in charge of the hearings at that time rendered no final decision as to the merits of the legislation, and the matter went over to the subsequent Congress.

The CHAIRMAN. For purposes of reference, the hearings before the Claims Committee will be a part of the record here before this committee.

Mr. ANDRESEN. The essential part of this bill is all I want to dwell upon, in order to give you a picture of it.

During the war certain employees located in Stillwater, Minn., and St. Paul and Minneapolis, were engaged in the manufacture of war materials under contract with the Government. They were in sev eral manufacturing institutions. During that time there appeared to be a general sentiment throughout the United States on the part of labor that they were not receiving enough wages. Employees in the Bethlehem Steel Co. and others went on strike, and the Government, through the War Department representatives, made certain financial arrangements so that the employees would receive greater compensation for the work they were doing-the Government paying the bill.

There was some difficulty in the factories referred to in this bill, but no strikes. Representatives of the War Department came to Minnesota and called together the employees in these factories and towns and told them, "If you will keep on making this equipment

for the Government, we will pay you the same rate of wages paid in other factories in the country.

The CHAIRMAN. Naming the other companies?

Mr. ANDRESEN. I do not know about that. Mr. LeSueur will talk better on that. However, the men continued their work and did not go on strike.

Mr. J. L. ASTON. The Bethlehem people did strike. The Bethlehem people called a strike for the 1st day of August, stating that unless certain things were done they would strike. The board made its decision on the 31st of July, and the strike did not go into effect.

Mr. ANDRESEN. But they threatened to go on strike. Finally legislation was enacted, and the employees of the Bethlehem Steel Co. were paid according to a law enacted in Congress.

The CHAIRMAN. When were they paid?

Mr. ANDRESEN. They called up the comptroller's office, and he said hat, while he did not have the definite date, yet they were all paid n full.

Judge ESLICK. The products that were turned out by these various companies, the Government paid for them?

Mr. ANDRESEN. Yes, sir.

Judge ESLICK. Now, did they pay to these companies the same price chedules paid to the Bethlehem Steel Co. and other companies? Mr. ANDRESEN. You mean the same contract price?

Judge ESLICK. Yes.

Mr. ANDRESEN. I can not say as to that, but Mr. LeSueur will go nto that with you more fully.

Judge ESLICK. Was the Government paying to these companies a price sufficiently high so that the companies should have paid higher wages to these men?

Mr. ANDRESEN. Answering that specifically, I will say that with the understanding the employees and the manufacturers had with the Government, that the Government would increase the amount of the contract price to meet this extra cost of labor.

Judge ESLICK. If they were paid a price by the Government to take care of this, it should have been an individual and not a governmental matter.

Mr. ANDRESEN. Yes, sir.

Mr. MAAS. This was a cost-plus contract, was it not?

Mr. ANDRESEN. No, sir; it was a regular contract.

Mr. KNUTSON. It was under the basis of the wages at the time the contract was entered into, and if an increase of wages was found necessary the amount paid under the contract was to be covered for any increase in wages.

The CHAIRMAN. If each speaker will give his name on rising, it will aid the reporter in his work, as he is not familiar with the names of all present.

Mr. GOODWIN, Minnesota. I think the record should show that these manufacturing plants were all engaged in manufacturing material used in the process of war and necessary for its proper prosecution.

The CHAIRMAN. Was this armament material of some sort that was being manufactured?

Mr. LESUEUR. I have a list prepared for the committee.

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